DoorDash cutting 1,250 corporate jobs as demand slows

Grappling with a slowdown in demand and high operating expenses, DoorDash announced a significant reduction to its corporate headcount.

The food delivery company is cutting approximately 1,250 jobs in a bid to reduce costs.

In a memo to staff on Nov. 30, DoorDash co-founder and CEO Tony Xu said the COVID-19 pandemic “presented sudden and unprecedented opportunities to serve the evolving needs of merchants, consumers and Dashers.”

“Our business has been more resilient than other [e-commerce] companies, but we too are not immune to the external challenges and growth has tapered [versus] our pandemic growth rates,” Xu noted.

“While our business continues to grow fast, given how quickly we hired, our operating expenses – if left unabated – would continue to outgrow our revenue.”

Impact in Canada

In a statement to CBC News, DoorDash confirmed that “some of the affected employees are based in Canada.”

However, the company didn’t disclose the specific number of Canadian workers that are being let go during the latest round of cuts.

Major tech layoffs continue

DoorDash is the latest in a growing list of major North American tech companies that have announced sweeping layoffs this year.

Amazon, Meta, Twitter, Hootsuite, Microsoft, Shopify, and Snap have substantially reduced their workforces as they continue to monitor market conditions.

According to DoorDash’s LinkedIn page, the company employs a global workforce of more than 42,000 people. Over 900 work in Canada.

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• Layoffs in Canada

Termination agreements for DoorDash employees

As part of the layoff announcement, DoorDash said affected staff will receive 17 weeks of compensation (13 weeks of severance pay and a four-week lump sum payment) as well as their “February 2023 stock vest.”

However, Canadian employees could be entitled to more compensation than the company is offering.

In Canada, non-unionized workers and senior executives at DoorDash are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

READ MORE
• Severance packages in mass layoffs
• Severance for technology industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.